Stores Ledger Records

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:31AM in AAT student discussion
Hi<BR><BR>I'm getting really annoyed with Osbourne books answers for AVCO store ledger records - in some cases they multiply by the whole of the number (e.g. 3.145624285) when a new cost has been calculated and stocks are issued in others they round the answer off. Either one can give a very different answer so its difficult to know what to do for the best? Has anybody else worked out why they do things one way then another I can't see the logic it just seems random? They also flick between rounding up after a 5 and not so frustrating!!!!<BR><BR>Are the exam papers more straight forward and tell you to round up?<BR><BR>Torix

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Stores Ledger Records

    <BR>The amounts are so minimul so it doesnt matter providing you stick to the same method yourself.<BR><BR>I think sometimes they work it out so it has whole figures ie I had say 160.01 and there get 160.<BR><BR>Dont worry about it!<BR><BR>Amanda
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Stores Ledger Records

    It is far more important to complete a simple reconcilliation than to get hung up on the number of decimal places.<BR>I normally tell my students to calculate the AVCO cost per unit to the nearest pence. AND then stick to this figure for the issues and the balance.<BR><BR>For example<BR>Total stock 5,050 units worth a total of £14,500<BR>The CPU is £2.87 To the nearest pence<BR><BR>If you then issue 1,000 units then use the £2.87 so value it at £2,870<BR>AND the closing stock of 4,050 is also valued using £2.87 = £11,623.50<BR><BR>You may have spotted that the stock plus the issue = £14,493.50 which is not the same as £14,500. <BR>This is a rounding error and nothing to worry about<BR><BR>When you get to the end of your stores ledger card reconcile by<BR><BR>Opening Balance (£) + Receipts - Issues = Closing Balance<BR><BR>If there is a small difference between your actual closing balance look at the roundings. If you think they explain the difference, say so.<BR><BR><a target=new class=ftalternatingbarlinklarge href="mailto:sandy.hood@chichester.ac.uk">SandyHood@Chichester</a>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Stores Ledger Records

    My tutor just told us to round to 3 decimal places. You will still have a slight rounding error but nothing major and you will be able to explain why - just like SandyHood said.<BR><BR>I'm glad I've already got ECR out of the way!!<BR><BR>Kelly

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